The Co-operative Bank of Kenya (Co-op) has reported a 9.8% increase in profit to KSh 25.5 billion in 2024 from KSh 23.2 billion in 2023.
- •The bank’s performance was underpinned by a surge in interest income, which reached KSh 86.2 billion, a 24.8% increase from the previous year, and government securities which generated KSh 26.9 billion, up from 23.1 billion.
- •Net loans and advances stood at KSh 373.7 billion, slightly down from KSh 374.2 billion in 2023, while customer deposits grew from KSh 451.6 billion in 2023 to KSh 506.1 billion.
- •Non-performing loans (NPLs) rose to KSh 71.1 billion from KSh 66.9 billion, reflecting increased borrower distress amid elevated inflation and a challenging business environment.
Operating expenses increased by 17.7% to KSh 46.7 billion, primarily due to higher staff costs, which grew to KSh 18.3 billion from KSh 16.7 billion. Despite the rising expenses, the ratio between the costs and the income remained manageable due to a solid performance in non-interest income, which reached KSh 29.1 billion.
Foreign exchange trading income saw a notable increase to KSh 5 billion, compared to KSh 3.2 billion in the previous year. The bank’s total capital stood at KSh 142 billion, surpassing the regulatory minimum, with a core capital to total risk-weighted assets ratio of 18.3%. The liquidity ratio stood at 59.9%, well above the statutory minimum of 20%, highlighting a strong buffer against possible market shocks.
Co-op Bank’s subsidiary, Kingdom Bank, reported a profit after tax of KSh 549 million in 2024, down from KSh 655 million in 2023, reflecting potential profitability challenges. Despite this, its interest income grew to KSh 4.4 billion, and its non-performing loans declined slightly to KSh 3.0 billion.
Co-op Bank aims to focus on digital banking and risk management strategies to navigate this year’s economic environment. As Kenya’s economy continues to adjust to inflationary pressures and fluctuating interest rates, the bank’s strategic focus on improving its assets and customer growth will be critical.
The Board recommended a dividend of KSh 1.50 per share with the distribution set for June 10, 2025, to shareholders on record as of April 28, 2025.
